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Updated about 5 years ago on .

User Stats

30
Posts
9
Votes
Brad Swearingen
  • Wholesaler
  • Wake Forest, NC
9
Votes |
30
Posts

Proxy house hacking then subject-to as a strategy

Brad Swearingen
  • Wholesaler
  • Wake Forest, NC
Posted

I am still a newbie but I love thinking of strategies for investing and creative financing/buying properties. So I want to know what you all think about this strategy and if any of you have experience doing this, please add some feedback.

What if I house-hacked but instead of me moving into the house, I got someone else to move in? Let me explain.
My wife and I don't want to move from our current house but we still want to house hack. So, what if I gave my adult son the 3.5% down payment for an FHA loan on a duplex. He would agree to move into the house and live for free on one side while we rented the other side to a tenant. After one year, he sells the house to me using a Subject-to. Then we find another house and do the same thing over again every year. This way he gets to stay for free and I still get the low FHA loan and the house without having to move. Maybe this could be done with multiple people I trust every year. What do you think?

Does this throw up any red flags?  Is there a chill going down your spine of fear, or excitement?  Let me know